~3_. ... l .- ·:;. •:');- ., . ., _.,_, i , : . : ;. ;,<. .. -~ .:, ... : .~. .. ; . ·~' .. ·- ...... ~ .. ( .... ·."' -._ : ... ..:. ·.· · . ....... f ·.~·,;· : . -Kenneth R. Mason, Secretary to the Commission :. ..·., ~ .;.. ../.·_'. ·: .. •, ~ . ·. ~ ·. ,.;,._ ·'l.: :·:Larry B. ·c1ayton and Robert W. Wallace,' Textiles, . ':..;:.. · ·"Leather Products, ·and Apparel Division }'!Eugene A. ·Rosengarden, ·Holm J. Kappler,. and George Weise, ·; ... :.'./Office of Nomenclature, Valuation, and Related Activities . ~. .. ' ' . ' ·' ' - . ~... , . ... , '._r,:1 ~~~-~ ·.~ .. ... ·. ~! .. .;'~:.· "'"":' ......... ·;·i ~ .. \~: .'?····.··· '. .. .... : ........ ~ :·:..... .·• ~~-·. .J ... Address all communications to : .. :._~·.;..,..... .,. ·_United States International T·rade Commission .· ... Washington, D. C. 20436 UNITED STATES INTERNATIONAL TRADE COMMISSION WASHINGTON, D.C. 20436 OFFICE OF' THE SECRETARY April 22, 1977 To whom it may concern: In the interest of providing more productive hearings in the investigation of the probable domestic impact of changing from the current "chief value" method of classifying textile imports to a "chief weight" method for classifying such imports (inv. No. 332-82), the United States Interna­ tional Trade Commission is making public its staff prehearing report to the Commission on the investigation. The staff prehearing report should provide interested parties with information that lo.Till·; in the event they choose to appear at the Commission's hearings or to submit briefs to the Commission, provide a better basis for information to be presented in the testimony or briefs. In view of this newly available information you are invited. to appear at any of the Commission's hearings or to submit briefs to the Commission on this subject. The public hearings in connection with the investigation will be held in Charlotte, N.C., on April 26, 1977, New York, N.Y., on May 10, 1977, Los Angeles, Calif., on May 24, 1977, and Washington, D.C., on June 7, 1977. Reqtiests to appear at the public hearings should be addressed to the Secretary, United States International Trade Commission, 701 E Street NW., Washington, D.C. 20436, and should be received not later than noon of the fifth calendar day preceding the hearing at which an appearance is requested. The staff prehearing report submitted herewith has not been reviewed by the Commission and, where positions are taken, it does not necessarily represent the views of the Commission. It is essentially a briefing paper prepared by the Commission's staff on this investigation, to prepare the Commissioners for the hearing. In many of the statistical tables, only partial statistical data were available for this report, but trends and generalities can be deduced from the data. Full data will be presented· to the Commission by the staff in its final report. The Com­ mission will then prepare its report to the President based on the finai ·staff report and information obtained from the public hearings, briefs filed by interested parties, and other sources. ;z;~ -· Kenneth R. Mason Secretary C O·N T EN T S Introduction: Background of this investigation----------------------------- 1 Chief-weight method of classification------------------------ 5 U.S. customs treatment: - Application of the chief-value concept to the textile provisions of the TSUS--------------~-------------- 8 Legislative background--------------------------------------- 10 Nontariff textile import restraints-------------------------- 12 Current customs practice-~--------------------------------~- 13 Problems of administration--------------------------~-------- 14 Analysis of the one-percent sample: Introduction------------------------------------------------- 17 Product analysis: Woven fabrics-------------------------------------------- 19 Knit fabrics--------------------------------------------- 21 Pile fabrics--------------------------------------------- 22 Certain narrow fabrics----------------------------------- 22 Certain lace------------------------------------------~-- 23 Webs, wadding, batting, and nonwoven fabrics---------~--- 23 Certain bedding------------------------------------------ 24 Certain tapestries--------------------------------------- 24 Certain furnishings----~--------------------------------- 24 Certain handkerchiefs------------------------------------ 25 Mufflers, scarves, shawls, and veils--------------------- 25 Certain underwear---------------------------------------- 26 Wearing apparel, not specially provided for-------------- 26 Certain headwear----------------------------------------- 28 Certain gloves--------------------------~---------------- 28 Certain wearing apparel of leather----------------------- 28 Textile ar.ticles not specially provided for, and certain articles of rubber or plastic~---------------- 29 Other products included in the 1-percent sample analysis- 29 Summary of data received by the Col!Dilission in response to . its questionnaires by certain producers and importers of textile and apparel products-----------------------------~-- 31 Wearing apparel and accessories------------------------------ 31 Apparel fabrics-------------------------------------------~-- 32 Certain textile home furnishings----------------------------- 33 Data published by the U.S. Department of Connnerce showing · certain textile products wholly of one fiber and of two or more fibers.---:---------------------------------------------- 34 i ii CONTENTS Page Appendix A. Statistical tables---------------------------------- 35 Appendix B. Proposed rules for determining "chief weight"------- 61 Appendix C. Modified proposed rules for determining "chief weight" and notice of time and place of public hearing--------- 79 Statistical tables 1. Certain woven fabrics containing, or which may contain, 2 or more materials: Preliminary summary, based on a 1-percent sample, of imports during 1974-76, total en­ tries, entries of 1 material, entries -0f 2 or more ma­ terials, and entries in chief value of 1 material and in chief weight of another material------------------------ 36 2. Certain knit fabrics containing, or which may contain, 2 or more materials: Preliminary summary, based on a 1-percent sample, of imports during 1974-76, total en­ tries, entries of 1 material, entries of 2 or more ma­ terials, and entries in chief value of 1 material and in chief weight of another material------------------------ 37 3. Certain pile fabrics containing, or which may contain, 2 or more materials: Preliminary summary, based on a 1-percent sample, of imports during 1974-76, total en­ tries, entries of l·material, entries of 2 or more ma­ terials, and entries in chief value of 1 material and in chief weight of another material------------------------ 38 4. Certain narrow fabrics containing, or which may contain, 2 or more materials: Preliminary summary, based on a 1-percent sample, of imports during 1974-76, total en­ tries, entries of 1 material, entries of 2 or more ma­ terials, and entries in chief value of 1 material and in chief weight of another material------------------------ 39 5. Certain lace containing, or which may contain, 2 or more · materials: Preliminary summary, based on a !-percent sample, of imports during 1974-76, total entries, en­ tries of l material, entries of 2 or more materials, and entries in chief value of l material and in chief weight of another material--------------------------------- 40 6. Certain webs, wadding, batting, and nonwoven fabrics con­ taining, or which may contain, 2 or more materials: Preliminary summary, based on a 1-percent sample of im­ ports during 1974-76, total entries, entries of 1 mate~ rial, entries of 2 or more materials, and entries in chief value of 1 material and in chief weight of another material--------------------------------------------------- 41 iii CONTENTS 7. Certain bedding containing, or which may contain, 2 or more materials: Preliminary summary, based on a !-per­ cent sample, of imports during 1974-76, total entries, entries of 1 material, entries of 2 or more materials, and entries in chief value of 1 material.and in chief weight of another mate.rial-------------------------------- 42 8. Certain tapestries, linens, and other furnishings contain­ ing, or which may contain, 2 or more materials: Prelim~· inary summary, based on a 1-percent sample, of imports during 1974-76, total entries, entries of 1 material, entries of 2 or more materials, and entries in chief value of 1 material and in chief weight of another material------------------------.-------------------------- ·4 3 9. Certain furnishings containing, or which may contain, 2 or more materials: Preliminary summary, based on a !-per­ cent sample, of imports during 1974-76, total entries,· entries of 1 material, entries of 2 or more materials, and entries in chief value of 1 material and in chief weight of another material-------------------------------- 44 10. Certain ha.ndkerchiefs containg, or which may contain, 2 or more materials: Preliminary summary, based on a !-per­ cent sample of imports during 1974-76, total entries, entries of 1 material, entries of 2 or more materials, and entries in chief value of 1 material and in chief weight of another material-------------------------------- 45 11. Certain mufflers, scarves, shawls, and veils containing, or which may contain, 2 or more materials: Preliminary summary, based on a !-percent sample of imports during 1974-76, total entries, entries of 1 material, entries of 2 or more materials, and entries in chief value of 1 material